CLAMPING down on council tax dodgers could help combat cuts in public services, according to county chiefs.

Increasing the efficiency of collection, as well as producing more accurate funding forecasts, could produce an extra £6.3 million a year.

That’s the claim from Leicestershire County Council as they push for all district councils to conduct a review into how the levy is enforced.

The move could put the top tier authority on a collision course with the districts, including Hinckley and Bosworth Borough Council, as none of the seven in the county believe a review is needed.

In a report to Leicestershire’s latest cabinet meeting officials are openly critical, saying: “The county council is prepared to contribute to the cost of the review. The proposed review has been discussed at officer level but all district councils have rejected the need for this on the basis they collect council tax effectively. This is despite significant evidence to the contrary.

“In part, the district view probably reflects their narrow perspective, ie they have little to gain from a review as most council tax goes to the preceptors. In taking such a position they are forgetting they have a responsibility to collect council tax effectively for all beneficiaries. The split of responsibilities under the two-tier system means that preceptors have little power to force such a review.”

The reports says the Leicestershire districts are not as efficient at ensuring the levy is paid as other authorities elsewhere. The national average is a 97.90% collection rate. Hinckley and Bosworth runs at 97.73%.

Hinckley Hub

However, the best performing councils achieve a rate of around 98.85% and the county says if this figure could be reached it would mean an extra £3.1 million.

The report also says if the districts were better at forecasting what council tax they were going to get a further £3.2 million could be accessed.

These extra amounts don’t include any money generated from more rigorous pursuit of fraudulent discount and exemption claims.

The estimates come as the county looks to slash costs by £66 million over the next four years, with £23 million of savings yet to be identified.

County cabinet members are told: “The county council is in an extremely difficult financial position and it is seeking to maximise cost reductions, efficiencies and income. By far the largest component of the county council’s income comes from council tax.

“In 2017/18 the county council is expected to generate 77% (£268 million) of its funding from council tax. Primarily due to the elimination of revenue support grant this will increase to 85% (£305 million) by 2020/21.

“There is little if any prospect of austerity measures coming to an end within the medium term and it is vitally important therefore that council tax income is optimised by having the right policies and procedures in place to secure the highest possible tax collection rates.

“For this to be achieved the council relies on district council revenue services operating as effectively and efficiently as possible. Having seven different collection authorities is neither efficient nor effective but that is the current position.”

The extra revenue would also benefit the police and fire services and the district councils themselves.